PYC pyc therapeutics limited

the $20 billion dollar plus market

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    Hi Wayne,

    These two comments highlighted in the Perth Showcase Lunch by CEO, Dr. Paul Watt caught my attention:

    Peptides are a type of drug that you will be familiar with. Insulin for example is a peptide. The Insulin market alone is a $20 billion dollar market. So we basically have a new class of peptide drugs like Insulin.

    and...

    The space we're playing in is quite an exciting area of peptide drugs and I said before that Insulin alone is a $20 billion dollar plus market. The other peptide constitutes a $13 billion dollar market themselves and that market is growing at twice the rate of conventional drugs. Conventional drugs are tablets or small molecule drugs that you're familiar with. So this is the new smart drug area that peptides belong to, that's growing at about twice the rate of small molecule drugs. But actually if truth be told, this market is exciting, but it's not going to continue to grow at the current rate, because the peptide companies are all chasing a limited number of different targets and in fact the peptides that make the most money, really only hit a very small number of disease associated targets. That's because current peptides can't get into cells, they can only bind targets on the outside of cells. We can hit targets inside of cells. 

    Why did this capture my attention? Could it be a hint of the next major deal for the company? 

    Here are my reasons...

    1. Dr. Paul Watt could have mentioned any number of indications but chose to select the Insulin market, not once, but twice throughout the presentation and also highlighted how very large the market actually is, rang bells for me. 

    2. I've been following the company's research in this area since they teamed up with the Garvan Institute back in 2006 on its extensive work on Type 2 Diabetes. Research suggests that inflammation participates in the pathogenesis of Type 2 Diabetes. 

    3. Phylomers - have demonstrated CPP ability to carry large and complex cargoes/payloads into cells. 

    4. A while back the CFO mentioned that Japanese Pharma meetings (held late October 2012) were all second stage meetings. CFO couldn't disclose the names but said the top seven Japanese Pharma were on the list. 

    5. The meetings with top seven Japanese Pharma, together with the testimonial highlighted below may possibly point to Takeda as being the front runner if Phylogica are indeed targeting this space. Takeda are certainly world leaders in this field. 

    This passage below is a high priority reason for Phylogica partnering in this space: 

    About Type 2 Diabetes 

    Type 2 diabetes is the most common form of diabetes affecting millions of people globally. In fact, more than 23 million people in the U.S. alone currently live with the disease. Type 2 diabetes is a progressive and chronic condition and patients should work with a health care professional to manage and monitor their disease. In addition to diet and exercise, patients often need to take multiple medications in order to help them manage their blood glucose levels. According to the International Diabetes Federation, the global health care expenditures for diabetes (both type 1 and 2) were estimated at $471.6 billion in 2012. By 2030, this number is projected to exceed $595 billion.

    6. I'm wondering if Phylogica have agreed to their research plan/s with prospective Japanese pharma and are now at next phase i.e., term sheet stage with the financials. 

    7. Once again, if the company is targeting this space and if it is Takeda, I believe there's a strong possibility that the deal will include Peptide Drug Conjugates to deliver their payloads. As we know, cell specific and cell penetrating Phylomers are a big area of interest. Peptide Drug Conjugates would be a huge opportunity for the company.

    http://www.prnewswire.com/news-releases/redwood-bioscience-secures-funding-for-optimized-conjugate-drug-development-124588848.html (Wayne, here's another company we can add to our list of 'strategic prospective partners' who recently teamed up with Takeda) 

    8. This will be a major influence for partnering with this company:

    http://www.fiercepharma.com/story/takeda-aims-backfill-actos-sales-new-diabetes-franchise/2013-01-28  

    http://www.takeda.com/news/2013/20130126_5626.html
      

    http://www.tpi.takeda.com/media/news-releases/2013/takeda-and-sanofi-sign-co-promotion-agreement-to-expand-reach-of--alogliptin/  

    9. Any one of the Pharma names highlighted in the articles above could be on Phylogica's list, if company is targeting the diabetes space. 

    10. After listening to the presentation, (and if Takeda is one of the prospective partners), there's certainly a strong possibility that the two companies are talking to each other on multiple levels (see Takeda's areas of focus on links below).  As I have previously mentioned, it wouldn't surprise me if Takeda has a close eye on Phylogica's technology. 

    http://www.takeda.com/partnership/

    http://www.takeda.com/partnership/opportunities/ 

    Also high on my list in the Diabetes space is Sanofi.

    About Sanofi

    Sanofi, a global and diversified healthcare leader, discovers, develops and distributes therapeutic solutions focused on patients’ needs. Sanofi has core strengths in the field of healthcare with seven growth platforms: diabetes solutions, human vaccines, innovative drugs, consumer healthcare, emerging markets, animal health and the new Genzyme. Sanofi is listed in Paris (EURONEXT: SAN) and in New York (NYSE: SNY).

    About Sanofi Diabetes

    Sanofi strives to help people manage the complex challenge of diabetes by delivering innovative, integrated and personalized solutions. Driven by valuable insights that come from listening to and engaging with people living with diabetes, the Company is forming partnerships to offer diagnostics, therapies, services and devices, including intelligent blood glucose monitoring systems. Sanofi markets both injectable and oral medications for people with type 1 or type 2 diabetes.
     

    Regards,
    Tony


 
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